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TMI Blog2018 (5) TMI 1022X X X X Extracts X X X X X X X X Extracts X X X X ..... ved that the assessee was asked to furnish all purchase and sales bills of the current year and of the preceding previous year. The assessee was also asked to submit the purchase and sales registers. The assessee submitted that the purchase and sales bills for the financial year 2010- 2011 has been kept by the assessee and not traceable at present and as such the assessee produced stock register to justify the closing stock of the financial year 2010-2011. The Assessing Officer observed that from SI.No. 9(b) and (9(c) of Form No.3CD of the audit report for the year shows that the assessee maintains Ledger, Purchase Register, Sales Register, Cash Book through computerized system and the auditor has also examined these books. The Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal, the CIT(A) held that as per provisions of section 184(5) of the Act, when the assessment is completed u/s.144 of the I.T.Act, 1961, salary and interest paid to the partners is not allowed as expenditure. He, therefore, confirmed the action of the Assessing Officer. 5. Being aggrieved, the assessee is in appeal before us. 6. Ld A.R. of the assessee before us relied on the decision of this Bench of the Tribunal in the case of M/s. Agarwal Transport Corporation vs ITO, Ward 2(1), Cuttack in ITA No.542/CTK/2013 order dated 8.7.2015, where, the Tribunal held that since the assessee in the present case has not produced the books of account and evidences in support of the expenses claimed as is evident from the order of the AO, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the provisions of section 144 of the Act, no deduction of salary and interest to partners was allowable. This was confirmed in appeal by the CIT(A). 9. The contention of ld A.R. is that in the similar facts and circumstances of the case in the case of M/s. Agarwal Transport Corporation(supra) this Bench of the Tribunal has allowed deduction for salary and interest paid to partners from the income estimated after rejecting the book results of the assessee and, therefore, following the same, salary and interest paid to the partners should be allowed as deduction to the assessee. 10. We find that Section 184(5) of the Act states that Notwithstanding anything contained in any other provisions of this Act, where, in respect of any assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not a case where the assessee has not filed its return of income. It is also not a case where the assessee fails to comply with the notice u/s.142(1) and also it is not a case where the assessee fails to comply with all the terms of a notice issued under section 143(2) of the Act. The assessment has been made by the Assessing Officer by estimating the income of the assessee by rejecting the books of account by invoking the provisions of section 145(3) of the Act as he was not satisfied about the correctness of the book results of the assessee. Thus, it is not a case where the assessment is made by the Assessing Officer u/s.144 of the Act. It is a case where assessment u/s.143 of the Act is made in a manner laid down u/s.144 of the Act. Our ..... X X X X Extracts X X X X X X X X Extracts X X X X
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